![Dear SaaStr: If You Want to Buy Shares from a Founder That Has Left the Company, What Price Do You Use?](https://www.saastr.com/wp-content/uploads/2019/08/Chloe-Jackman-Photography-Saastr-Day4-2019-4146.jpg)
![Dear SaaStr: If You Want to Buy Shares from a Founder That Has Left the Company, What Price Do You Use?](https://www.saastr.com/wp-content/uploads/2019/08/Chloe-Jackman-Photography-Saastr-Day4-2019-4146.jpg)
![5 Tips On How to Handle Acquisition Talks](https://www.saastr.com/wp-content/uploads/2016/02/selling-1080x675.jpeg)
5 Tips On How to Handle Acquisition Talks
Dear SaaStr: What should I know about getting acquired? My top 5 tips: #1. Listen more. Talk less (on the target side). It’s very difficult to invent an acquisition. It’s almost impossible to create one, though it happens sometimes. Listen and learn. ...![Dear SaaStr: Do Shares Get “Forward Vested in an Acquisition?](https://www.saastr.com/wp-content/uploads/2015/09/2_Chloe-Jackman-13.jpg)
Dear SaaStr: Do Shares Get “Forward Vested in an Acquisition?
Dear SaaStr: Do Shares Get “Forward Vested in an Acquisition? Stock vesting is accelerated very rarely in an acquistion. In 95%+ of cases, the acquirer wants folks to keep vesting just as before — or more so. Even where the option agreements or bylaws or...![Dear SaaStr: What Should Founders Do To Get Noticed By An Established Company’s M&A Team?](https://www.saastr.com/wp-content/uploads/2024/05/Red-and-White-Simple-Notice-For-Sale-Sign-Poster-1080x675.jpg)
Dear SaaStr: What Should Founders Do To Get Noticed By An Established Company’s M&A Team?
Dear SaaStr: What Should Founders Do To Get Noticed By An Established Company’s M&A Team? Don’t bother too much with trying to get “corporate development” or the M&A team’s attention. That’s not their job. Probably the most...![Dear SaaStr: How Do You Build a Real Exit Strategy?](https://www.saastr.com/wp-content/uploads/2024/05/acq-1080x675.jpeg)
Dear SaaStr: How Do You Build a Real Exit Strategy?
Dear SaaStr: How Do You Build a Real Exit Strategy? First, bear in mind acquisitions are relatively rare. The vast majority of startups will never get one acquisition offer, let alone a good one. Still, it’s not random. I’ve been through it twice as a...![Can You Still Get Acquired for a Decent Price if Growth Has Slowed or Even Stopped? Yeah, Sometimes](https://www.saastr.com/wp-content/uploads/2024/03/Screen-Shot-2024-03-01-at-3.06.29-PM.png)
Can You Still Get Acquired for a Decent Price if Growth Has Slowed or Even Stopped? Yeah, Sometimes
So the other day a CEO reached out to me about advice on an acquisition. They wanted to do three things: Enter a space they had no product or customers in today; and Add on at least $10m of extra revenue for the year; and Not add too much to their burn rate. So this...![9 Things Founders Should Know About Getting Acquired with Brett Goldstein, Former M&A at Google](https://www.saastr.com/wp-content/uploads/2024/03/SaaStr-Workshop-Wednesdays-Bretts-MA-Talk-2.jpg)
9 Things Founders Should Know About Getting Acquired with Brett Goldstein, Former M&A at Google
Former member of the M&A team at Google, Brett Goldstein, now Founder at Micro and Co-Founder & CEO of Launch House Ventures, shares the nine things founders should know about getting acquired. It’s a common dream for founders to hope their startup be acquired one day, but what is a company, like Google, really looking for in their acquisitions? And what should all founders know about the process if the time comes?
![Dear SaaStr: How Do Investors Feel About “Acquihires”?](https://www.saastr.com/wp-content/uploads/2015/09/1_Chloe-Jackman-14.jpg)
Dear SaaStr: How Do Investors Feel About “Acquihires”?
Dear SaaStr: How Do Investors Feel About “Acquihires”? Back when I started investing, in 2013, VCs worked on getting acquihires for their struggling startups. A lot of energy was put in to find a “soft landing” for struggling investments...![Tech and Startups Have Changed. Do Founders Still Come Last?](https://www.saastr.com/wp-content/uploads/2024/02/bond-988x675.jpg)
Tech and Startups Have Changed. Do Founders Still Come Last?
So the other day I did a 20VC with Harry Stebbings, and one of the topics that came up was the Hopin founder’s $100m+ secondary that the CEO took out of the company. While the company is still around, the Hopin product was subsequently sold for pennies on the...![Dear SaaStr: Is It Normal for a Founder CEO to End Up With Just 10% Equity?](https://www.saastr.com/wp-content/uploads/2017/08/dil-1080x675.jpeg)
Dear SaaStr: Is It Normal for a Founder CEO to End Up With Just 10% Equity?
Dear SaaStr: Is It Normal for a Founder CEO to End Up With Just 10% Equity? Yes — if you are venture-backed. Roughly speaking, this is what generally will happen after 3 rounds of traditional venture capital. Expect it and plan for it. If the company sells...![Dear SaaStr: What Happens to Employees After Your Startup Gets Acquired?](https://www.saastr.com/wp-content/uploads/2015/10/3_Dace-James-10.jpg)
Dear SaaStr: What Happens to Employees After Your Startup Gets Acquired?
Dear SaaStr: What happens to employees after your startup gets acquired? It varies — a lot. But as a rule: Top engineers will all be given retention packages, extra money / RSUs / options designed to keep them for 2-4 years. All engineers and product people...![Most SaaS Metrics Really Only Work if You Have 75%+ Gross Margins and 100%+ NRR](https://www.saastr.com/wp-content/uploads/2023/12/IMG_5004-1080x675.jpeg)
Most SaaS Metrics Really Only Work if You Have 75%+ Gross Margins and 100%+ NRR
So over the past decade-and-a-half we’ve come up with a lot of yardsticks, metrics and rules for SaaS companies. E.g.,: CAC of < 12-14 months is Good-to-Great Paying sales reps 25%-30% of what they close is Good A burn multiple of 1 or less is Good These metrics do...![Dear SaaStr: Why Do Many Startup CEOs Quit After Their Companies Are Acquired?](https://www.saastr.com/wp-content/uploads/2019/08/Dace-Hines-Photography-Saastr-2019-41.jpg)
Dear SaaStr: Why Do Many Startup CEOs Quit After Their Companies Are Acquired?
Dear SaaStr: Why Do Many Startup CEOs Quit After Their Companies Are Acquired? Five reasons: First, it’s very difficult for most founder-CEOs to work for someone else. They generally don’t mind working with others. They don’t even need to be “the boss”. But being told...![Dear SaaStr: What Are the Exit Options for VCs That Fail to Make It in The VC Industry?](https://www.saastr.com/wp-content/uploads/2017/12/shake-1080x675.jpg)
Dear SaaStr: What Are the Exit Options for VCs That Fail to Make It in The VC Industry?
Dear SaaStr: What Are the Exit Options for VCs That Fail to Make It in The VC Industry? There is probably no better business to fail at than to be a failing General Partner at a sizeable VC firm. If you fail as an associate, principal, etc. … that’s just like any...![Dear SaaStr: Do Late Stage Startups Prefer to Get Acquired or Go Public?](https://www.saastr.com/wp-content/uploads/2019/08/Dace-Hines-Photography-Saastr-2019-453.jpg)